Skip to comments.High Court: Online shoppers can be forced to pay sales tax
Posted on 06/21/2018 7:58:37 AM PDT by Reno89519
WASHINGTON (AP) The Supreme Court says states can force online shoppers to pay sales tax.
The 5-4 ruling Thursday is a win for states, who said they were losing out on billions of dollars annually under two decades-old Supreme Court decisions that impacted online sales tax collection.
The high court ruled Thursday to overturn those decisions.
Each year the physical presence rule becomes further removed from economic reality and results in significant revenue losses to the States. These critiques underscore that the physical presence rule, both as first formulated and as applied today, is an incorrect interpretation of the Commerce Clause, he wrote.
(Excerpt) Read more at apnews.com ...
Always with the $$$$$$$$$$$$$$$$.
As a consumer, bad! For states and citizens, good. As a small business, this is frightening. While South Dakota law has $100K threshold before requirement to collect taxes, will other states? And what about states that collect tax on services? And how am I as a small business owner supposed to sort out state, county, and local taxes for each customer?!
They know not what they do.
There are local (city, county) taxes as well as state sales taxes in some jurisdictions.
In addition, some industries have other taxes based on sales.
Good thing I already have a lifetime stash of cigars. :-)
And be subject to audit by every state sellers ship to. Could be really messy for smaller online sellers
I wonder who will collect the tax, the retailer when the sale is made or the tax payer when filling out their tax return?
I’m OK with this as long as I don’t have to pay taxes in two states for one transaction. Also, I don’t want to pay NYC local taxes.
“stare decisis” unless there is a pile-o-cash in the mix
The first. Many states already require the latter—saying if you purchased and didn’t pay taxes, then you are required to declare and later do so. Even as the article notes, most people never did. I sure didn’t when living in states where this was noted on the tax return.
The 5-4 breakdown was a little strange:
Yes, interesting. From ruling: KENNEDY, J., delivered the opinion of the Court, in which THOMAS, GINSBURG, ALITO, and GORSUCH, JJ., joined. THOMAS, J., and GORSUCH, J., filed concurring opinions. ROBERTS, C. J., filed a dissenting opinion, in which BREYER, SOTOMAYOR, and KAGAN, JJ., joined.
The South Dakota law under review: “The law required out-of-state sellers who do more than $100,000 of business in the state or more than 200 transactions annually with state residents to collect sales tax and turn it over to the state.”
I understand that. I assume many online sales sites will start calculating and collecting sales taxes for small businesses - for a fee.
Don’t know if the ruling will open the door for county and city taxes as well.
“Good and bad. “
The GOOD part is it is apparent this court is willing to abandon stare decisis and overturn one of its own rulings.
Non event. Amazon already collecting taxes in Carolina.
Then, again, will it matter?
Will this be tax evasion if I don't collect? My business or me personally?
If I don't collect New York city and state tax, will they issue arrest warrant for me? And nearby California, the same? Will my home state honor it? Will I simply find myself with less travel options to avoid arrest?
What if a state, county, or city says ALL and not just $100,000 threshold that South Dakota set? Nothing that I see prevents that and states like California and New York are quite greedy and tax hungry.
Taxing is the most important in the minds of statists. Without forcing people to pay, they would not be able to realize their dream of the all-powerful state.
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